Texas Looking to Steal Yet Another Employer from California

2 years ago

Just last week, Texas poached the North American headquarters of Toyota from California, which is moving with its 4200 high paying jobs to Plano, north of Dallas.

But some in Texas think there is more treasure to be looted from the Golden State, and this week a delegation led by State Rep. Jason Villalba (R-Dallas) will make a trip to California to convince Huy Fong Foods, the nation's manufacturer of Asian Sriracha hot sauce, to move it's plant to Texas.

Villalba says that factory would look great in the San Antonio area.

"We have a prime growing region in the southern part of the state which is the prime growing region for the peppers which are needed to produce this product," he said.

Villalba says Huy Fong has had it with the regulations which industrial employers have to juggle in California.He says the Sriracha plant has been shut down repeatedly over their last several months due to complaints about the odor the factory is emitting.

"In California, there are so many regulatory constraints there have been great burdens on their ability to produce," he said.

California Gov. Jerry Brown didn't provide a vote of confidence to embattled firms in his state last week, implying that companies that leave California are 'stupid.'

But Villalba says it is a target-rich environment for Texas as it continues to convince California firms to move east.

"This company, Huy Fong Foods, is one of many, there is a trend in Texas of bringing California companies."

Villalba also points out that moving to Texas would mean an increase in the standard of living for California employers.The cost of living in California, even in areas well away from the beach, is far higher than it is in Texas.

Villalba concedes that indicating its willingness to talk to Texas about relocating may simply be a ploy by Huy Fong to wring concessions out of local governments in California.But he said even if that is the case, Texas will have made its case as a prime location for expansion of the company's operations.